Delaware is one of the most popular states in the United States to incorporate a business. This is due to its favourable business laws, which make it an attractive place to do business. In addition, Delaware offers a number of benefits that make it a good choice for businesses of all sizes.
Benefits of Incorporating in Delaware
There are many benefits to incorporating in Delaware, including:
1. Favourable business laws
Delaware’s business laws are some of the most favourable in the United States. This includes laws that protect investors, make it easy to raise capital, and provide for a favourable tax environment.
2. Provides a tax shelter
If a business does not conduct its operations in Delaware, the state’s corporate income tax may not apply. Instead of paying that income tax, Delaware corporations instead pay a much lower franchise tax
Low Franchise and LLC Tax:
Most states require annual franchise and LLC taxes based on earned income. Delaware’s franchise tax is an annual flat fee for limited partnerships and limited liability companies.
The franchise tax for corporations is calculated based on the type of corporation, the number of authorized shares, and other factors. According to the state:
- The minimum tax is $175, using the Authorized Shares Method
- The minimum tax is 400 using the Assumed Par Value Capital Method
- A maximum tax of $200,000 for both methods unless;
- It has been identified as a Large Corporate Filer then its tax will be $250,000.
Flexible corporate structure: Delaware allows businesses to choose from a variety of corporate structures, including C corporations, S corporations, and limited liability companies (LLCs). This flexibility allows businesses to choose the structure that best meets their needs.
3. Strong legal system
Delaware has a strong legal system that protects businesses and their assets. This includes a well-developed corporate law body and a judiciary experienced in resolving business disputes.
4. Access to global payment systems
Creators and businesses in many parts of Africa cannot receive funds through global payment systems like Stripe because Stripe does not support those countries. With a Delaware entity, creators can benefit from X’s Ad Revenue Sharing Program because they will get an EIN which is needed to open a Stripe account
Benefits of Incorporating with Norebase
In addition to the benefits of incorporating in Delaware, there are also a number of benefits to incorporating with Norebase. These benefits include:
Affordable: Norebase charges a fee of $450 to incorporate a Delaware company. This is significantly cheaper than the fees charged by other incorporation services and law firms.
Half the time spent: Norebase can incorporate a Delaware company in as little as 3 – 5 days. This is significantly faster than the time it takes to incorporate a company through other services.
Frictionless process: Norebase’s incorporation process is simple and easy to follow. This makes it easy for businesses to incorporate their company quickly and efficiently.
If you are considering incorporating a business, Delaware is a great option. Delaware offers a number of benefits that make it an attractive place to do business, including favourable business laws, no state income tax, a low franchise tax, a flexible corporate structure, and a strong legal system.
In addition to the benefits of incorporating in Delaware, there are also a number of benefits to incorporating with Norebase. Norebase is 4x cheaper than a law firm and you get a US business in 5 days or less in a transparent and frictionless process. This makes it easy for businesses to incorporate their company quickly, efficiently, and affordably.